Single-digit vacancies prevailed in the regional industrial markets in 2017. Demand for new construction and previous generation buildings increased space shortages, particularly for 100,000 square feet and greater. The rapid absorption of speculative construction and an increase in RFP’s for potential build-to-suits have developers securing and entitling new development sites.

In addition to sustained demand for bulk distribution space, there has been a noticeable increase in manufacturing requirements. This includes expansions to existing facilities, consolidating multistate operations into a single efficient location or leasing additional warehouse space to dedicate more room for production functions.